Older iPhone Generations - What happens?

With all the reading, rumors, and speculation going on I just want to ask a question of all you concerning older generation iPhones. Most of the information out there points towards Apple producing two phones, the iPhone 5 and the cheaper iPhone 4. Please allow me to speculate and say that if the new, cheaper iPhone 4 hits the market at $99, and the iPhone 5 takes over the $199 spot, what will/could happen to the current iPhone 4 models left in stock by the carriers? I've never fully understood what Apple does with the older units when they release a new model. Do you think it will still be offered for sale by the carriers?

With all the reading, rumors, and speculation going on I just want to ask a question of all you concerning older generation iPhones. Most of the information out there points towards Apple producing two phones, the iPhone 5 and the cheaper iPhone 4. Please allow me to speculate and say that if the new, cheaper iPhone 4 hits the market at $99, and the iPhone 5 takes over the $199 spot, what will/could happen to the current iPhone 4 models left in stock by the carriers? I've never fully understood what Apple does with the older units when they release a new model. Do you think it will still be offered for sale by the carriers?

Thanks!

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1 they will send back to apple to be replacement unit for warranty 2 they will be discounted at cheaper prices!

Also Apple is pretty good at drying up distribution of products that are about to be replaced to minimize the amount of unsold units out there before announcements. So as soon as you start seeing retailers selling out of a product or inventory levels are getting smaller a new product is on its way.

Thanks for the info. The current iPhone would be a nice thing to have but I'm waiting to see what may be released. If it looks like the current iPhone 4 will work ok for me then I'm hoping for a great deal.

Another important thing that happened: after the iPhone 4 was released, AT&T continued to sell the 16GB and 32GB iPhone 3GS at a deeply reduced price, but stipulated on the receipt that these were closeout items that could not be returned or exchanged. You could do warranty replacements through Apple, but basically the understanding was they were getting rid of the inventory and sales were pretty much final at the cheap price.

At that point, 8GB iPhone 3GS models also went on sale for cheap, but with normal return/exchange policies. And during the 3GS era, only the previous-gen 3G model was sold with 8GB.

So, the same might happen again: AT&T and possibly Verizon will closeout their 32GB iPhone 4 models (and maybe their 16GB models) with an "all sales final" stipulation, and offer a low-capacity iPhone 4 that Apple will keep making as the "budget" version. I would hope it isn't 8GB again though. Maybe this time they'll keep making the 16, who knows?

Honestly, the iPhone 4 would probably do everything that I need. Currently my only iOS device is an 8GB iTouch which even though it's billed as 3rd generation has the processor of the 2nd generation. So even the iPhone 4 would be leaps and bounds ahead of what I'm used to. If the 16GB is deeply discounted, I'll have a hard time convincing myself to shell out the extra money for the iPhone 5 unless it's just to have the latest. I do have to admit that I really like the looks of the 4, too.

Honestly, the iPhone 4 would probably do everything that I need. Currently my only iOS device is an 8GB iTouch which even though it's billed as 3rd generation has the processor of the 2nd generation. So even the iPhone 4 would be leaps and bounds ahead of what I'm used to. If the 16GB is deeply discounted, I'll have a hard time convincing myself to shell out the extra money for the iPhone 5 unless it's just to have the latest. I do have to admit that I really like the looks of the 4, too.

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It was never billed as 3rd generation, they carried over the 2nd generation 8GB and only updated the 32 and 64 GB ones.

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